Chicago Fed President Goolsby said recent data has given him hope that inflation could subside without causing undue pain to the economy, but the Fed is unlikely to end its rate hikes. said he wanted to wait until the trend became clearer.
“We’ve seen short-term progress, like last summer, but it’s been a bogus improvement,” Goolsby said in an interview Monday. He added that it is too early to say at this stage what the Federal Open Market Committee (FOMC) should decide at its next meeting in September.
FOMC Raises Interest Rates to Highest Level in 22 Years – Possibility of Additional Interest Rate Raises (3)
“I don’t like to commit upfront about what actions we will take in September,” Goolsby said. “When we’re approaching a tipping point, every meeting will be a live meeting, trying to spot trends, not just reflect single-month data,” he said.
Original title:Fed’s Goolsbee Wants More Inflation-Ease Proof to End Rate Hikes(excerpt)
(Adds governor’s comment)
2023-08-01 18:03:00
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